Financial Instruments

 Instrument Maturity Risk  
Certificate of Deposit   90 days or more   None if insured




   Corporate 5–30   years   Some
   Municipal 1–20   years   Some
   Stocks Immediate   Low to high


 U.S. Treasury

   Bills  1   year or less   None
   Notes  1–10   years   None
   Bonds  10–30   years   None
   Mutual Funds  Varies   Low to high
  Retirement Funds  When buyer is 60 years  old   Low

Getting Out of Trouble

I found this information on It’s a great website for increasing financial understanding and options. I would highly recommend exploring the site; even if you feel that you are the best money manager in the world.

Reasons why consumers can’t pay

  •  loss of income (48%)
  • Unemployment (24%)
  •  Illness (16%)
  •  Other (divorce, death) (8%)
    overextension (25%)
  • Poor money management, Emergencies, Materialism, Need for instant gratification
    defective goods and services (20%)
  • fraudulent use of credit (4%)
  • other (3%)

Signs you are in Trouble

  • You don’t know how much you owe.
  • You often pay bills late.
  •  You get a new loan to pay old loans.
  •  You pay only the minimum balance due each month.
  • You spend more than 20% of your net income (after paying rent or mortgage) on
    debt maintenance.
  • You would have an immediate financial problem if you lost your job.
  •  You’re spending more than you earn, using your savings to pay for day-to-day expenses.

 First steps to take if you can’t pay your bills

  •  Take another (close) look at your budget and cut your expenses.
  •  Be realistic about what you can afford (the hardest) and
    contact your creditors
  • Tell them why you can’t pay, that you intend to pay, and when/how much you will be
    able to pay.
  • You may be able to work out a new payment schedule.

The app for Dough

Better World Books

Powered by Conduit Mobile

Please download the app at and look for BloggApp; the picture for the app is a green apple. Using the app you will be able to locate credit unions, seek and find financial coaches, shop for mortgages and compare savings. Its free !! so what can you lose.

IRA Contribution

Contributions made only between ages of 22–30 (9 years)

•$2,000 contributed each year
•Total investment of $18,000
•At an interest rate of 9%, by age 65 will have $579,471


Contributions made only between ages of 31–65 (35 years)

•$2,000 contributed each year
•Total investment of $70,000
•At an interest rate of 9%, by age 65 will have $470,249

Business Development Companies (“BDC“)

Last Friday I wrote a post about BDC and why I would take a look at it. As previously stated BDC is a good way to invest in startups without necessarily being an angel investor which requires a lot of money. Today Wells Fargo Business Development Company ETN is trading at $ 25.90. As always please ,please do research and determine if in the long run its worth a buy and as always make sure that you don’t invest more than what your comfortable loosing. As Much as I like this company I would not buy more than two stock because I would want to limit my exposure to a potential significant loss; after all stocks go up and down. Please click on the picture to see the full profile of Wells Fargo Business Development Company ETN (BDCS)


Top 5 Sectors
Portfolio weighting
Business service 
Consumer goods 
Consumer service 
Financial service 


1 month -2.28%   3 years
3 months +2.00%   5 years
1 year +24.76%   Since inception +9.11%
Data through 04/06/2013
There is a lot of room for growth in startups and it could be exciting just accept that at the same time there might be some losses.

Jobs Jobs Jobs Rate

Woke up this morning to hear some good news. According to reliable resources the U.S jobless rate has fallen below eight percent; The rate has fallen because of a combination of job creation and people simply giving up in finding jobs. Within the group of those that have given up there a few who decided to create their own wealth. This truth brings me to an article I saw on called “Investing in startups: More fun than profit “. A great point made by the article is that investing in a startup will not always provide a big return of the initial investment; in their own words the author of the article wrote the following;

The risk: The majority of startups don’t make it in the long run. “I get calls where someone may have inherited $50,000,” says Jeffrey Sohl, director of the Center for Venture Research at the University of New Hampshire. “I tell them, ‘You’re not going to find the next Google. Put it in a bank so you don’t lose it all.’ “Risk aside, retail investors have limited options to get in early.Venture capital funds invest in young companies that typically have a track record, but you need a net worth of at least a million dollars and must be able to put up $250,000. And while anyone can back an entrepreneur with a dream, “angel” funds, which diversify their holdings among startups, also restrict themselves to high-net-worthers.

If you aren’t a high net worth individual but would like to get in on funding startups the article suggests looking at something called Business Development Companies (BDCs). The way BDC’s work is by buying equity or convertible debt in startups. The investor may receive interest payments or dividends, or get a future payoff via an initial public stock offering.

Creating your own fortune requires initial investment which highlights the importance of saving for a raining day. I like to think starting a business as social activism because you are contributing to society. Considering the dismal economy I think that now is the perfect time to create your own fortunes; specially for those new college graduates. Please click on the picture to read the full article.


Google Bitcoins and you get many answers but in a nutshell its an electronic currency. What does that mean ? it means that you can buy just about anything without having paper money. The downfall is its extreme volatility but if you are a Cypriun, Greek, Spaniard or even Portuguese and have been hit by the recent European economic storm it might seem safer than putting it in a bank. One Bitcoin is currently trading at over $100 and there are numerous places for you to buy some. I will admit that yesterday I was very tempted to buy a couple but after thinking about it I found it too risky. Besides the volatility in value I am worried that some idiot will go ahead and hack the system since it is all electronic. The positive side of this currency is that it could lead to more stable world economy if its done right. It also has the possibility of making consumption stable. I am not sure Bitcoin currency will hold on but I see this as the start of a day when you and I will no longer carry Dollar bills, Yens or British Pounds in our pockets. I saw this article on about someone who is apparently trying to install Bitcoins atms in Los Angeles and Cyprus. To see the full article please click on the picture.